i did my homework and searched the forum for information but most is from over a year ago when the world of financing was much different. i fully understand i can get a better rate from a credit union (Navy FCU is at 4.54% today for example). this is the point of my question. the dealership's finance guy is telling me to get Ford Options financing its 8.7% non-negotiable which is ridiculous.
Ford Options interest rate non-negotiable and extremely high?
Hi all - new to the forum and have found it valuable so here's some candy (Lariat Lighting at Woody Anderson Ford in Huntsville Alabama is selling for $76K MSRP with no ADM Search All Inventory ask for Alex Carr, he's the man).
Back to the question, I was considering purchasing the above vehicle to skip the wait on my reservation (ultimately I decided to hold out for my preferred XLT configuration) so had the finance guy run the numbers. He said the Ford Options interest rate was 8.7% and non-negotiable. Any one else have this experience or gotten a better rate than 8.7% recently? He admittedly had done a Ford Options purchase before so I am skeptical.
Back to the question, I was considering purchasing the above vehicle to skip the wait on my reservation (ultimately I decided to hold out for my preferred XLT configuration) so had the finance guy run the numbers. He said the Ford Options interest rate was 8.7% and non-negotiable. Any one else have this experience or gotten a better rate than 8.7% recently? He admittedly had done a Ford Options purchase before so I am skeptical.
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did you use Ford Options financing? https://www.ford.com/finance/finance-options/ford-options/ Since it is a lease-like retail arrangement I understood financing had to go thru FordMy dealer did my financing thru a credit union. Quick and easy. 5.25%
Yeah, I really like the idea of having an option to upgrade in 3 years as BEV technology improves (and retake another tax credit). I guess I'm looking for someone who bought a Lighting Ford Options recently to understand what interest rate they got and if it negotiable.Don't do the Ford options deal unless you plan on turning it in at the end of the "lease."
Yeah that makes sense. Hoping there is someone out there who has financed via Ford Options recently to get a reality check. The higher interest rate actually sounds worse than it is. I found an calculator over on the Mach-e forum that compares conventional loan to Ford Options terms and you can play with the interest rate on both. It calculates I'll pay about $1k more in interest via Ford Options financing than conventional (8.7% vs 4.5%) over the 36 month term but that's with the lower monthly payments and option to turn-in at end of term via Ford Options. Finance guy at dealership busted out a calculator (seriously!) and think got it wrong saying there was $19k finance charge over the 36 month term via Ford Options. I hate to pay the creditors anything let alone $1k but that's a way different decision than >$10k difference.Sounds like you know this, but the only advantage to the Ford Options seems to be that you can take the tax credit. Everyone I have heard of has not gone that route because of the super high interest rates. I suspect they are non negotiable, but haven't' heard of anyone that has actually done it. The rates may be the reason.
thanks for this! i was looking at a 3 yr term to correspond with the ability to retake tax credit every 3 years. what tool did you use for this calculation? i've been trying to convey this to the finance guy but haven't found anything this goodFord options guesstimate. Is the amort period 6 years?
Ford options guess:
BALLOON PAYMENT LOAN ASSUMPTIONS LOAN PRINCIPAL AMOUNT
$90,000.00 ANNUAL INTEREST RATE 8.70% AMORTIZATION PERIOD (IN YEARS) 6 YEARS UNTIL BALLOON PAYMENT 3 KEY FINANCIAL DATA MONTHLY PAYMENT TOTAL MONTHLY PAYMENTS TOTAL AMOUNT PAID TOTAL INTEREST BALLOON PAYMENT
Conventional:
BALLOON PAYMENT LOAN ASSUMPTIONS LOAN PRINCIPAL AMOUNT
$90,000.00 ANNUAL INTEREST RATE 4.50% AMORTIZATION PERIOD (IN YEARS) 6 YEARS UNTIL BALLOON PAYMENT 6 KEY FINANCIAL DATA MONTHLY PAYMENT TOTAL MONTHLY PAYMENTS TOTAL AMOUNT PAID TOTAL INTEREST BALLOON PAYMENT
yeah its a definitely a higher finance fee but gives the option to return/upgrade which to me is worth it for an extra $1k with possibility of a better battery, design, etc in the next three years. problem is they are telling me its like $10k more which i've very skeptical of since they have not done it previously. i really like my dealer but it'll be great once this finance stuff is modernized and a guy can be accurately informed before purchase date.I was looking at the options plan back last october/november. I came to realize that even if the rate was decent i’d end up paying more in the end. About the only benefit I could see was having the option to turn it in And walk away.
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